News | A. J. Johnson Consulting Services

October 14, 2026

The Social Security Administration has announced a 3.6% cost-of-living adjustment (COLA) for 2027, up from the 2.8% increase in 2026. The adjustment will provide additional income to millions of older adults and people with disabilities. For affordable housing managers, it also introduces a known change to consider when determining household income and, where applicable, tenant rent. [1, 2]

Benefit increases and payment dates

SSA estimates that the average Social Security retirement benefit will increase by $75 per month, or about $900 annually. The average retired-worker benefit is projected to rise from $2,095 to $2,170. The $75 figure is an average, not a uniform increase for every beneficiary; individual amounts depend on the existing benefit and applicable adjustments. [1, 3]

Increased Social Security payments take effect in January 2027. Supplemental Security Income (SSI) recipients will receive their increased January payment on December 31, 2026. That early payment is the January benefit, not an additional monthly benefit. [1]

The new maximum federal SSI payment standards are as follows. [2, 3]

Recipient	2026 monthly standard	2027 monthly standard	Monthly increase
Eligible individual	$994	$1,029	$35
Eligible couple	$1,491	$1,544	$53

These are federal maximums. Actual SSI payments may be lower due to countable income or other eligibility factors, and some states provide supplemental payments. The couple amount applies to an eligible individual with an eligible spouse; it is not the payment for each spouse. Managers should verify actual benefits rather than automatically assigning the maximum standard. [4]

Other retirement and pension benefits

Related cost-of-living adjustments also affect VA pensions, Civil Service pensions, and Railroad Retirement benefits, but managers should not apply the 3.6% increase to every payment without verifying the benefit type. [5-8]

VA pension rates are tied to the Social Security COLA. However, a needs-based VA pension is calculated using the applicable maximum pension rate and VA income, which includes Social Security. A simultaneous Social Security increase can therefore affect the actual VA pension payment. Obtain the updated award amount. [5, 6]

Civil Service Retirement System (CSRS) annuities generally receive the full CPI-based adjustment. Under OPM’s formula, a 3.6% adjustment produces a 2.6% COLA for eligible Federal Employees Retirement System (FERS) annuities. This is a formula-based calculation; age restrictions, exceptions, and first-year proration may affect an individual’s increase. [7]

Railroad Retirement Tier I benefits generally follow the Social Security COLA. Tier II adjustments use 32.5% of the CPI increase rather than the full percentage, and some other railroad payments receive no COLA. Social Security offsets and survivor-benefit provisions can also affect actual payments. Use the Railroad Retirement Board’s individualized benefit notice. [8]

Include the COLA in projected household income

For applicants and residents whose certifications are effective after October 14, 2026, projected income should include the announced COLA for the portion of the certification period during which the increased benefit will be received, subject to applicable program and state housing agency requirements. A certification effective before January does not justify applying the higher benefit to months preceding the increase.

For example, assume a verified gross Social Security benefit of $1,500 per month and a November 1, 2026, certification based on a forward-looking 12-month projection. The estimated increased benefit is $1,554 ($1,500 × 1.036). Include two months at $1,500 and ten months at $1,554, for a projected annual Social Security income of $18,540. For a January 1, 2027, certification, twelve months at $1,554 would total $18,648. These examples assume no other benefit changes; use SSA’s actual amount and applicable rounding requirements when available.

HUD’s current HOTMA implementation notice sets a specific rule: beginning the day after SSA announces the COLA, PHAs and Multifamily owners must incorporate it into Social Security and SSI income for unfinished annual and interim reexaminations effective January 1 or later in the upcoming year. For this announcement, that processing requirement begins on October 15, 2026. HUD annual reexaminations may use a prior-year income method with required adjustments, so managers should follow the rules applicable to their property rather than assume every program uses the same projection method. [9]

Verification and rent implications

Use the gross Social Security benefit before Medicare deductions, not the net bank deposit. When the program permits medical-expense deductions, evaluate eligible premiums separately. Keep the benefit verification, published COLA, calculation worksheet, and certification together in the tenant file. Avoid applying the COLA twice to a notice that already reflects the increased amount. [10]

At LIHTC properties, the COLA can affect initial income eligibility and, when income recertification is required, the available unit rule. A properly qualified existing household does not automatically lose LIHTC status merely because its income increases; apply Section 42 and the project’s specific requirements. LIHTC maximum rents are based on applicable income limits, not on an individual household’s Social Security increase. The COLA itself does not authorize a 3.6% increase in the LIHTC rent ceiling. [11]

At income-based assisted properties, higher benefits may affect tenant rent when applicable certification or reexamination rules require an adjustment. Managers should evaluate reporting requirements, interim thresholds, deductions, and notice obligations before changing rent. The announcement also serves as a practical reminder to review pending certifications and to explain to residents why increased gross benefits may result in a smaller change in disposable income. [9, 10]

SSA will make personalized COLA notices available online to most beneficiaries in late November, with mailed notices following in December. Managers should plan verification requests accordingly and reconcile estimated increases with official benefit information in accordance with applicable agency procedures. [1]